Bitcoin

Davies

<a href="https://ultramining.com/news/en/riot-platforms-to-boost-efficiency-with-midas-immersion-coolings/">Riot</a> Platforms Inc. has made a bold $950 million offer to acquire <a href="https://ultramining.com/news/en/bitfarms-set-to-boost-mining-capacity-with-quebec-expansion/">Bitfarms</a> Ltd., marking a significant consolidation in the Bitcoin mining sector. This follows a previous approach in April, which Bitfarms' board rejected. Riot's offer includes $2.30 per share in cash and stock, approximately 20% above Bitfarms' trading price before the initial offer. 
Riot has already secured a 9.25% stake in Bitfarms, making it the largest shareholder. The company cited management turnover and governance issues at Bitfarms as key motivators for the takeover. Recently, Bitfarms fired interim CEO Geoffrey Morphy, who is suing the company for $27 million over a breach of contract, according to <a href="https://coingape.com/bitcoin-miner-riot-platforms-eyes-bitfarms-acquisition-950m-deal/">Coingape</a>. 
This acquisition attempt comes after Bitcoin's <a href="https://ultramining.com/news/en/heat-waves-and-halving-bitcoin-miners-cash-in-amid-rising-prices/">halving</a> event, which halved miners' token rewards, prompting many to seek mergers and acquisitions to stay competitive. Riot's CEO, Jason Les, emphasized that adding Bitfarms would make Riot the largest Bitcoin miner globally, significantly boosting its <a href="https://ultramining.com/news/en/bitcoin-miners-set-for-a-tough-ride-as-2024-halving-nears-jp-morgan/">production</a> capacity. 
The merger proposal will be discussed at Bitfarms' upcoming shareholder meeting on May 31. Riot plans to push for new independent directors to improve governance at Bitfarms. The acquisition, if successful, would give Bitfarms shareholders about 17% ownership in the combined entity. 
Bitfarms' shares rose 3.3% to C$2.86 (about $2.10), giving it a market value of around $750 million. Riot's shares increased by 4%, valuing the company at about $3 billion. Citigroup Inc. is advising Riot, with legal advice from Paul, Weiss, Rifkind, Wharton &amp; Garrison LLP, and Davies Ward Phillips &amp; Vineberg LLP. 
Riot operates North America's largest Bitcoin mining facility in <a href="https://ultramining.com/news/en/texas-residents-challenge-bitcoin-mining-industrys-impact-on-power-grid-and-communities/">Texas</a>, with a power capacity of 700 megawatts and is building another site with up to one gigawatt capacity. Meanwhile, Bitfarms has been expanding globally, focusing on regions like South America, where <a href="https://ultramining.com/news/en/minnesota-man-faces-accusations-of-electricity-theft-for-bitcoin-mining/">electricity</a> is cheaper.

Riot Platforms Pursues $950M Acquisition of Bitfarms Amid Industry Consolidation

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